The Board of Directors of a Nongovernmental Not-For-Profit Organization Voted

The board of directors of a nongovernmental not-for-profit organization voted to designate $100,000 of its unrestricted net assets to be used for its permanent endowment. Which of the following best describes the accounting and financial reporting implications of this action?

A) The net assets are still considered unrestricted.
B) The net assets are now considered temporarily restricted.
C) The net assets are now considered permanently restricted.
D) Unrestricted net assets will decrease in total.